Tenancy Deposit Protection Scheme

Every private Landlord in England and Wales letting private residential property is by law required to join one of 3 government - authorised tenancy deposit protection schemes if:

 The tenancy is let under an Assured  Shorthold Tenancy Agreement.

The deposit must be registered within 30 days of receipt and the tenants informed.

As we do not hold deposits we would advise you, our Landlord to look into the schemes that are on offer. If you have any problems with this procedure just contact the office that you have been dealing with and they will guide you through the whole process step by step.

The Three schemes are:

  1. The Deposit Protection Service (The DPS) - Custodial and Insured deposit protection scheme – The custodial deposit protection scheme is free to use and open to all Landlords and Letting Agents. The service is funded entirely from the interest earned from deposits held. The Insured deposit protection scheme has no registration or annual renewal fee but charges from £15.00 per deposit registered. The Landlord retains the deposit and protection will be provided to the tenant(s) for the duration of the tenancy. Landlords and Letting Agents will be able to register and make transactions on line. Paper forms will also be available should internet access be an issue. The scheme will be supported by a dedicated call centre and an independent dispute resolution service.
    For more information, visit www.depositprotection.com or call 0330 303 0030
  2. MyDeposits - This insurance-based tenancy deposit protection scheme enables Landlords to hold deposits. The fee for joining this scheme is £20 and from £18.00 per deposit protected by the deposit protection scheme. The protection covers the duration of the tenancy and if the tenant(s) continues onto a Statutory Periodic Tenancy you need to inform MyDeposits. A new protection fee is needed at the start of every new fixed term AST agreement.
    For more information, visit www.mydeposits.co.uk or call 0333 321 9401
  3. The Dispute Service (TDS) is an insurance-backed deposit protection and dispute resolution scheme which has been established in 2003 to provide dispute resolution and complaints handling for the lettings industry. The scheme enables letting agents and landlords to hold their deposits. There is no fee for joining this scheme but will cost from £14.70 to register a deposit.
    For more information, visit www.thedisputeservice.co.uk  or call 0300 037 1000.

    *If you are a landlord that lives overseas you have to join the custodial deposit protection scheme.

If a deposit is not protected, the landlord will be breaking the law. The Landlord will be unable to regain possession of the property using notice-only grounds for possession under the Section 21 of the Housing Act 1988. The tenant can apply for a court order requiring the deposits to be protected, or for the prescribed information to be given to them.

If the court finds your landlord hasn’t protected your deposit, it can order the person holding the deposit to either:

  • repay it to the tenant
  • pay it into a custodial TDP scheme’s bank account within 14 days

The court may also order the landlord to pay you up to 3 times the deposit within 14 days of making the order.

You can also Contact Natasha Eddy by email tash@blackkatz.com / 0207 284 3111

What is the Tenancy Deposit Scheme?

Tenancy Deposit Scheme

The government introduced a provision in the Housing Act 2004, whereby it will be a requirement that all landlords/agents that wish to take a monetary deposit will need to place the deposit into a Tenancy Deposit Scheme this scheme was introduced in April 2007. The tenancy deposit scheme is described in sections 212 to 215 and schedule 10 within the Housing Act 2004.


It was introduced to safeguard tenants' deposits which are paid in connection with Assured Shorthold Tenancies against unscrupulous landlords and agents who withhold the deposits with no justified reason, it helps to facilitate with resolving disputes over the return of the deposit. Basically the scheme has been introduced to reassure tenants that the return of the deposit is a fair deal due to the fact that the agent or landlord is a member of scheme which uses an independent adjudicator.

How does it work?

There are two types of schemes on offer a Custodial Scheme and an Insurance based scheme.

  • Custodial Scheme - in this scheme the deposit is forwarded to a designated third party. It is then held by this party throughout the tenancy until the termination of the tenancy and is returned when all parties are happy with the appropriation of the deposit.
  • Insurance Scheme - this is whereby the landlord or the agent holds onto the deposit but the landlord or agent is involved in a scheme that ensures that should the landlord withhold the deposit then the scheme shall pay out.
  • For more information you go to www.communities.gov.uk

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